Answer: $907,580
Explanation:
Under Absorption Costing you remove the opening fixed cost balance and add the ending fixed cost balance to find out the net income in this manner,
Net Income under Variable Costing = $911,000
Opening Fixed Overhead Cost
= 1.8 x 56,100
= $100,980
Closing Fixed Overhead Cost
= 1.8 x 54,200
= $97,560
= 911,000 - 100,980 + 97,560
= $907,580
This is the income under Absorption Costing.
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Answer:
D) mixed costs should be separated into their variable and fixed components
Explanation:
A mixed cost is a cost that contains both a fixed cost component and a variable cost component. It is important to understand the mix of these elements of a cost, so that one can predict how costs will change with different levels of activity. Typically, a portion of a mixed cost may be present in the absence of all activity, in addition to which the cost may also increase as activity levels increase. As the level of usage of a mixed cost item increases, the fixed component of the cost will not change, while the variable cost component will increase. The formula for this relationship is
<span>Bartering can be more time-consuming than trading with money.
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